Corporate

Company Snapshot

Property: Spanish Mountain Gold Project  
Ownership: 100% Ownership  
Symbol: TSX.V: SPA | OTC: SPAZF  
Location: British Columbia, Canada  
Share Structure: Shares Issued & Outstanding:
Fully Diluted:
327 Million
407 Million
Market Capital:          ~ $90 Million  
Management:

Larry Yau, CEO
Sharon Ng, CFO
Judy Stoeterau, VP of Geology
Raymond Mah, Project Director
Doug Ramsey, Director, Sustainability and Indigenous Affairs

   

 

Board of Directors:

W. Terry MacLean
Don Coxe
Dale Corman

Christopher Lattanzi
Sara Heston

Spanish Mountain is concurrently pursuing dual project objectives:

  1. Advance multi-million ounce reserve through critical project milestones towards production within a compressed timeline 
  1. Rapid resource expansion—ongoing drilling programs to add to the multimillion ounce resource

 

Highlights of PFS results

Current strategy prioritizes the development of the near-surface/ higher-grade multi-million ounce reserve as a standalone operation.  The PFS demonstrates a potential mining operation characterized by robust production profile, low operating cost and modest capital expenditures.

Project Economics

  Gold Price (USD)
  Units $1,200 $1,400 $1,600* $1,800 $2,000 $2,200 $2,400
Pre-Tax Economics                
  NPV(5%) $M $125 $486 $848 $1,209 $1,570 $1,931 $2,293
  IRR % 9% 18% 25% 31% 36% 42% 47%
  Payback Yrs 5.4 4.0 3.2 2.7 2.4 2.1 1.9
  Cumulative Free Cashflow from Operations $M $1,040 $1,583 $2,127 $2,670 $3,214 $3,758 $4,301
Post-tax Economics                
  NPV(5%) $M $129 $415 $655 $888 $1,119 $1,350 $1,580
  IRR % 9% 16% 22% 27% 31% 36% 39%
  Payback Yrs 5.5 4.0 3.3 2.8 2.5 2.2 2.0
  Cumulative Free Cashflow from Operations $M $1,041 $1,454 $1,797 $2,140 $2,484 $2,828 $3,173

* PFS Base Case

Reserve

The Project’s Mineral Reserves, which are a subset of the M&I Mineral Resources, are based on the mine plan developed for the PFS.  Mineral Reserves are estimated in accordance with the CIM 2019 Best Practices Guidelines and are classified using the 2014 CIM Definition Standards.

  Tonnage (Mt) Au Grade (g/t) Gold (Moz) Ag Grade (g/t) Silver (Moz)
Proven 40.8 0.79 1.03 0.67 0.88
Probable 55.1 0.74 1.31 0.74 1.30
Total P&P Reserve 95.9 0.76 2.34 0.71 2.18

 

Select Operational and Cost Metrics 

  Unit Yrs 1-6
Avg.
LOM
Avg.
 
Gold Grade g/t 0.88 0.76  
Annual Gold Production Koz 183 150 (peak production 211Koz)
Annual Silver Production Koz 68 63  
Cash Cost /oz US$ $602 $696  
All-in-sustainable Cost/oz US$ $707 $801  
Total Cost/ oz US$ $974 $1,068  

 

Unit Cost of Production

 

Unit

CAD

USD

Mining $/t mined $2.22 $1.69
Mining $/t milled $10.80 $8.21
Processing $/t milled $6.58 $5.00
G&A $/t milled $1.36 $1.04
TSF $/t milled $0.17 $0.13
Water treatment $/t milled $0.47 $0.36
Total $/t milled $19.38 $14.73

 

Initial Capital Expenditures

Direct Costs C$M US$M
Overall Site $26 $19
Open Pit Mining $73 $56
Ore Handling $34 $26
Process $125 $95
Tailings and Water Management $40 $30
Environmental Monitoring $2 $2
On-site Infrastructures $42 $32
Off-site Infrastructures $64 $49
Water treatment Plant $10 $7
Total Direct Costs $416 $316
Project Indirects $102 $78
Owner's Costs $14 $10
Contingencies $75 $57
Total $607 $461

 

Resource Expansion

The Company has an ongoing campaign to continue its track record of resource expansion.

As part of the PFS, an update of the Mineral Resources has been prepared based on the pit shell developed using assumed cost parameters and assumptions.  The Project’s Mineral Resources, inclusive of the Mineral Reserves reported above, are as follows:

 

Classification Run of Mine
(Mt)
Gold Grade
(g/t)
Silver Grade
(g/t)
Contained Gold
(Moz)
Contained Silver
(Moz)
Measured 68.4 0.59 0.67 1.3 1.5
Indicated 225.7 0.47 0.73 3.4 5.3
M&I Resources 294.2 0.50 0.72 4.7 6.8
Inferred Resource 18.3 0.63 0.76 0.4 0.4

 

*See Cautionary Statement

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